The Federation of Automobile Dealers Associations (FADA) reported that the electric vehicle (EV) segment nearly doubled its growth in June 2025 compared to the same period last year.
As per FADA data, for every 100 passenger vehicles sold in June this year, around five were electric, up from approximately two in June 2024. However, total vehicle sales for the month showed signs of moderation, reported ANI.
“While demand during the festival and marriage season gave a lift to overall sales, challenges such as limited financing options and occasional shortages of specific vehicle variants curbed the pace. Additionally, early monsoon showers and growing EV adoption patterns also influenced consumer choices,” said C. S. Vigneshwar, President of FADA.
In the two-wheeler segment, electric models saw a steady increase, with market share rising from 6.07% in May to 7.28% in June. The commercial vehicle (CV) category also experienced a slight gain in EV share.
FADA maintained a cautiously optimistic outlook for the auto retail market, citing increased government capital expenditure expected between June and August 2025. The focus of this spending is likely to be on infrastructure sectors such as roads, railways, metro projects, and green energy. This is anticipated to drive growth in the commercial vehicle and construction equipment (CE) categories.
Retail figures for June 2025 already reflect this shift. While overall month-on-month vehicle sales declined by 9.44%, the CE segment surged by 44.98% month-on-month and 54.95% year-on-year. The CV segment saw a 6.6% rise year-on-year, despite a slight 2.97% dip month-on-month.
The strength in CV sales was supported by early-month deliveries and continued order inflows, even as higher ownership costs emerged due to new tax rules and the introduction of mandatory air-conditioned cabins.
Moreover, the monsoon forecast—expected to exceed 106% of the long-period average—is likely to improve rural cash flow, boosting demand in sectors such as two-wheelers and tractors.
The government’s sustained commitment to capital expenditure in infrastructure and sustainability-related projects further strengthens the outlook for CV and CE sales, particularly as project activity picks up pace following the onset of the monsoon.
